The Proper Journal Entry to Purchase a Computer Costing $975

question 162

Multiple Choice

The proper journal entry to purchase a computer costing $975 on account to be utilized within the business would be

• A) Office Supplies Accounts Payable
• 975
• 975
• B) Office Equipment Accounts Receivable
• 975
• 975
• C) Office Equipment Accounts Payable
• 975
• 975
• D) Office Supplies Accounts Receivable
• 975
• 975

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Definitions:

Marginal Social Cost

The total cost to society of producing an additional unit of a good or service, including both the private costs and any external costs.

Market Price

The current rate at which a product or service is available for purchase or sale in an open market.

Congestion Fee

A congestion fee is a charge imposed on users of a crowded public goods, such as city roads or public transit systems, intended to reduce traffic congestion and improve air quality.

Internalize Costs

The process of ensuring that businesses or individuals take into account the external costs they impose on society in their decision-making.